Zimbabwe’s Economic Stability Opens a Path to Better Jobs

Zimbabwe now has a chance to turn stabilization into improvements that people can feel through dependable electricity, expanding businesses, higher earnings and formal jobs.

Zimbabwe's recent success in controlling inflation has created a rare opening to build a stronger economy, raise household incomes and move more workers into secure, productive employment, according to the World Bank Group's new Zimbabwe Growth and Jobs Report. Fiscal restraint and tighter monetary management helped bring local-currency inflation into single digits in early 2026 for the first time since 1997, while real gross domestic product grew by nearly 6% a year on average between 2021 and 2025, yet many families have seen little improvement in their everyday financial security.

Growth Has Yet to Reach Most Workers

Around 80% of Zimbabweans earn their living in the informal economy, where median monthly earnings stand at roughly $130 and workers often lack stable contracts, social protection or reliable opportunities to build their skills. Nearly half of the population lives below the international poverty line, showing how economic growth can appear strong in national figures without creating enough well-paid work for ordinary people. Many workers leaving agriculture have moved into small-scale retail and informal services rather than manufacturing, technology or other higher-value industries capable of supporting stronger wages and sustained productivity.

The report estimates that Zimbabwe's economy could grow by an average of 4% a year through 2030 if the country continues along its present path, a pace that would push its ambition of reaching upper-middle-income status back to 2036. A faster programme of structural reforms could place the country on a far more promising course, lifting real GDP by an additional 10.7% above the baseline by 2030 and 26.9% by 2040, creating as many as 230,000 jobs and increasing real worker earnings by more than 30% over the same period.

Reliable Power and Transport Could Unlock Investment

Electricity shortages remain one of the most expensive barriers facing Zimbabwean businesses, costing the economy an estimated 6.1% of GDP each year through interrupted production, damaged equipment, higher operating expenses and lost investment. Greater generation capacity, a more reliable power grid and carefully selected investments in transport corridors and irrigation would help factories operate consistently, farmers reach markets more efficiently, and rural communities withstand changing rainfall patterns.

Firas Raad, World Bank Division Director for Malawi, Tanzania, Zambia and Zimbabwe, said the country's central challenge is turning macroeconomic stability into better opportunities and living standards. Addressing constraints in electricity, transport and irrigation, creating clearer conditions for businesses and reducing risks for private investors could strengthen livelihoods while keeping Zimbabwe's Vision 2030 ambitions within reach.

Reforms Could Help Small Businesses Grow and Formalise

Complicated permits, administrative charges, unpredictable taxes and slow cross-border procedures make it harder for small firms to invest, employ more people and enter the formal economy. A simpler regulatory system could reduce the cost of doing business while encouraging entrepreneurs to move beyond survival-focused activity, gain access to finance and develop companies capable of providing stable jobs.

The report also calls for stronger land-tenure protections, more dependable commercial courts, wider access to credit and clearer rules for foreign investors. Maintaining low inflation and fiscal discipline will remain essential, alongside progress on resolving public debt and arrears so Zimbabwe can regain access to concessional external financing. World Bank Senior Economist and report lead author Victor Steenbergen said early action on electricity reliability and trade facilitation could deliver rapid gains, creating a foundation for deeper legal and financial reforms that strengthen investor confidence over time.

Zimbabwe now has a chance to turn stabilization into improvements that people can feel through dependable electricity, expanding businesses, higher earnings and formal jobs. Capturing that opportunity will require coordinated action sustained across several years, with policies judged not only by economic indicators but also by whether they make work more productive and daily life more secure.